Flexible Budget Analysis as a Production Cost Control Instrument for Culinary MSMEs: A Study of Pangsit Kak Dani Medan

Abstract

This study aims to examine how flexible budget analysis functions as a production cost control instrument in a campus-based culinary micro-enterprise, Pangsit Kak Dani, located at the Mosque Canteen of Universitas Negeri Medan, by formulating a flexible budget model and identifying production cost variances. Daily output in this business fluctuates between 500 and 2,000 wonton pieces with the academic schedule, while raw material prices are volatile, and the owner has no benchmark that adjusts to output. A single-case study with a descriptive qualitative approach integrated with quantitative management accounting calculations was used. Primary data were collected in September 2026 through structured interviews with the owner, participatory observation of production, and documentation of raw material purchase receipts. Costs were classified into variable and fixed (imputed) components, yielding a standard variable cost rate of IDR 525.00 per piece, daily fixed costs of IDR 210,000.00, and the flexible budget equation Y = IDR 210,000 + IDR 525(X). The budgeted cost of goods manufactured (COGM) ranged from IDR 945.00 per piece at 500 pieces to IDR 630.00 at 2,000 pieces, showing that unit cost rises on low-volume days even without any loss of efficiency. At the normal output of 2,000 units, the flexible budget was IDR 1,260,000.00, whereas actual daily cash expenditures averaged IDR 1,500,000.00, an unfavorable variance of IDR 240,000.00. This variance consisted of an unfavorable chicken meat price variance of IDR 250,000.00, caused by the switch to higher-priced chicken fillets during supply disruptions, partly offset by a favorable IDR 10,000.00 variance on seasonings and packaging. The study concludes that flexible budget analysis allows micro-entrepreneurs to separate volume-driven from price-driven cost changes, which supports production planning, pricing, and purchasing decisions, although the single-case design limits generalization.